Land Rover Leads Robust UK Premium Diesel Sales
Diesel car sales in the UK have seen a decline of 11% as volume manufacturers shift their focus towards electric power. However, premium brands, including Land Rover, Audi, BMW, and Mercedes-Benz, have bucked this trend and accounted for 56% of diesel car sales in the first half of 2023.
According to figures from the Society of Motor Manufacturers and Traders (SMMT), diesel sales fell to 86,469 units, giving the fuel a record low market share of 7.9%. In comparison, electric car sales grew by 38% and captured 16% of the market. Despite the overall decline in diesel sales, premium models continue to perform well, with four of the top five best-selling diesel cars coming from premium brands.
The Land Rover Defender emerged as the best-selling diesel model, with 6,049 units sold. It was followed by the Audi Q5, Range Rover Sport, Volkswagen Tiguan, and Land Rover Discovery. Land Rover’s share of diesel sales stood at an impressive 56%, highlighting the continued popularity of diesel among customers looking for fuel efficiency in larger SUVs. Jaguar also had a higher-than-average share of diesel sales at 41%.
In contrast, German premium brands such as Audi had a lower share of diesel sales at 14%. SMMT CEO Mike Hawes noted that for many drivers, diesel cars remain the most efficient option, particularly for those in rural areas or those with high mileage or towing requirements.
The decline in diesel’s popularity is not limited to the UK but is also evident in the European Union. Diesel cars were overtaken by electric vehicles (EVs) for the first time in June, with diesel’s market share falling to 13% compared to EVs’ 15%. However, premium demand for diesel remains strong in Germany, where it accounts for 26% of all cars sold.
BMW and Audi also had significant shares of diesel sales in Germany, with 38% and 37% respectively. Industry analyst Matthias Schmidt believes that customers, especially fleets, are taking advantage of attractive lease deals offered by car makers to recoup investments.
While diesel continues to be popular among buyers of larger SUVs, its market share is being eroded by electric and plug-in hybrid alternatives. Plug-in hybrid electric vehicle (PHEV) sales rose by 28% to 73,857 units through July, closing in on diesel sales. Land Rover was the leading PHEV seller in the UK, followed by BMW and Volvo. PHEVs offer more generous company-car tax incentives and are better futureproofed against tightening emissions regulations.
As charging speeds improve and the charging network expands, electric vehicles are becoming more appealing for drivers of larger premium vehicles. However, for some buyers, the fuel economy and ease of use of diesel will remain unbeatable for years to come.
In conclusion, while diesel sales have declined overall, premium brands like Land Rover continue to perform well in the UK market. The popularity of diesel among customers looking for fuel efficiency in larger SUVs remains strong. However, the rise of electric and plug-in hybrid alternatives suggests a shift in consumer preferences towards more environmentally friendly options.